Citigroup Bites the Brokerage Bullet

By

David Reilly

Sept. 11, 2012 3:20 p.m. ET

There can be a huge difference between what a bank says its assets are worth and what they will fetch in the market.

The latest reminder: a deal announced Tuesday by Morgan Stanley and Citigroup that valued their brokerage joint venture at $13.5 billion. That is almost $10 billion less than what Citi figured the Smith Barney venture was worth this spring and will lead the bank to take a noncash, aftertax charge of $2.9 billion in the...